Faia, Ester; Lechthaler, Wolfgang; Merkl, Christian - 2010
. None of the studies considers a model with frictional labour markets which is a crucial element, particularly at times in … subsidies deliver larger multipliers as they reduce distortions in sclerotic labour markets; short-time work (German "Kurzarbeit … multipliers operate, namely the labour demand stimulus which occurs in a model with non-walrasian labour markets. -- Fiscal …